How General Motors Overcame Quakes in Supply Chain in its Last Quarter

General Motors is showing that financial success requires strong supply chain risk management.

Forbes
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General Motors (GM) reported record profits for the second quarter of 2016. This was despite 70 percent of GM’s suppliers suffering negative impacts from the earthquake in Japan in spring of this year.

GM, as well as many other leading companies, are showing that financial success requires strong supply chain risk management. The auto firm announced a net income of $2.9 billion, up 157 percent from the same quarter in 2015.

Even though disruptions were felt by the entire automotive industry following the quake, all but one of the Detroit-based manufacturer’s vendors maintained production, Autonews reports.

The crisis was not without cost: Reduced parts availability forced the closure of four North American plants for two weeks.  In its large Spring Hill site, over 2,000 of workers were affected by the shutdown. During this period, staff were earning just three-quarters of their normal wages.

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